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Re: Roth IRA Basis for early withdrawal

Here's the "youngster" part of neat table by kawill on the fairmark.com site concerning Roth withdrawals: withdrawals by the ordering rules are considered to be contributions first, then conversions oldest first and within each conversion the taxable part first, then finally earnings. Ther...
by kaneohe
Fri Feb 27, 2015 11:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Basis for early withdrawal
Replies: 9
Views: 282

Re: Roth IRA to Roth IRA Transfer - How to Avoid Fees?

Also be aware that you can only do the indirect rollover once per every 12 mos. (not calendar yr) taking into account all your TIRAs and RIRAs.
by kaneohe
Fri Feb 27, 2015 10:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA to Roth IRA Transfer - How to Avoid Fees?
Replies: 2
Views: 174

Re: Old IRA statements: What should I keep?

not sure about VG but some fund companies have a consolidated annual statement that might enable dumping Q1,2,3 so at least some savings there.
by kaneohe
Fri Feb 27, 2015 10:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Old IRA statements: What should I keep?
Replies: 6
Views: 538

Re: How to determine cost-basis following REIT-equity spin-o

[quote="tpn"].......................................... Presumably our cost basis for this first sale would simply be its share price at its founding a couple weeks ago (so essentially no gain or loss), .....................................quote] You might want to read the materials provid...
by kaneohe
Wed Feb 25, 2015 2:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to determine cost-basis following REIT-equity spin-off
Replies: 1
Views: 137

Re: Foreign Tax Credit and State Taxes

grabiner, thanks. Appreciate the clarification on those issues.
by kaneohe
Wed Feb 25, 2015 12:03 am
 
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit and State Taxes
Replies: 7
Views: 605

Re: Foreign Tax Credit and State Taxes

recasting the bait.................
by kaneohe
Tue Feb 24, 2015 7:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit and State Taxes
Replies: 7
Views: 605

Re: I need help with my IRA's Contribution

Thanks Kaneohe for your response, The way I understand your post is to open another TIRA account and role over the money that I withdrew from my current TIRA account into it, Then characterize within 60 days and roll over to Roth, is that correct? almost.........you need to rollover within 60 days ...
by kaneohe
Tue Feb 24, 2015 7:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: I need help with my IRA's Contribution
Replies: 3
Views: 280

Re: Trust questions

seems to be very individual.........PenFed CU, Alliant CU , Synchrony Bank do Ally does but doesn't allow automated telephone accesss; CapOne 360 (the old Ing) doesn't but allows ACH to trust at outside if controlled from other side; TIAA-Direct doesn't but TIAA-CREF won't ACH (push) from qualifed p...
by kaneohe
Tue Feb 24, 2015 6:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trust questions
Replies: 7
Views: 564

Re: I need help with my IRA's Contribution

Perhaps it might have been better to have rechararacterized your TIRA contribution to a Roth one. http://fairmark.com/retirement/roth-accounts/recharacterizations/recharacterization-rules/ Then it would have been has if you had never made the TIRA contribution at all, just the Roth one. Your earning...
by kaneohe
Tue Feb 24, 2015 3:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: I need help with my IRA's Contribution
Replies: 3
Views: 280

Re: Taking RMD this year

Gill wrote:This is one reason I decided to change my usual RMD from the end of December to early January. I'd rather know the RMD is completed rather than have a beneficiary not understand the requirements.
Gill


But this will be an ongoing issue, yr after yr, unless they get educated?
by kaneohe
Tue Feb 24, 2015 1:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taking RMD this year
Replies: 13
Views: 917

Re: Taking RMD this year

There could be if through ignorance or other reasons, they fail to take the RMD when required or, if a spouse, don't assume the IRA so if
you're really concerned, be sure they know what to do. The linked document above appears to be pretty good so it would be useful.
by kaneohe
Tue Feb 24, 2015 11:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Taking RMD this year
Replies: 13
Views: 917

Foreign Tax Credit and State Taxes

from Pub 514: State income taxes. State income taxes (andcertain taxes measured by taxable income) are definitely related and allocable to the gross income on which the taxes are imposed. If state income tax is imposed in part on foreign source income, the part of your state tax imposed on the forei...
by kaneohe
Tue Feb 24, 2015 11:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit and State Taxes
Replies: 7
Views: 605

Re: Recapturing gains due to TLH at the 0% level

Watty wrote:...............................
Your state taxes might be different and you might own capital gains taxes to them.

...........................


or worse...........in some states, you pay ordinary income rates for CGs.
by kaneohe
Mon Feb 23, 2015 7:26 pm
 
Forum: Investing - Theory, News & General
Topic: Recapturing gains due to TLH at the 0% level
Replies: 16
Views: 855

Re: Income tax on MF capital gains?

Assuming that you are correct about VG not withholding on the fund sales, the next thing I would think about is to increase your withholding on your military pension so that you cover the taxes for the fund sales over the rest of the yr. That would eliminate any timing concerns since withholding is ...
by kaneohe
Mon Feb 23, 2015 6:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Income tax on MF capital gains?
Replies: 4
Views: 393

Re: Help with Form 8606 (Roth IRA Recharacterization)

Yes, I think you have it right. That step 4) is telling you not to report on the 1040 line 15 for both 2014 or 2015 if all you did was the recharaterization back to TIRA since that is described in the narrative. If however, you do the next step...the Roth conversion, then you do report that on 8606 ...
by kaneohe
Mon Feb 23, 2015 12:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Form 8606 (Roth IRA Recharacterization)
Replies: 2
Views: 178

Re: Foreign Source Income/Foreign Tax Credit

............... 1) I am trying to understand why having a larger Foreign Source income is favorable in practical terms. ................ 2) So you have $3500 Foreign Source income ($4000-$500) on which you paid $300 in foreign tax. Don't you get a 100% credit for the tax ($300 back) even at the $35...
by kaneohe
Sun Feb 22, 2015 10:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Foreign Source Income/Foreign Tax Credit
Replies: 9
Views: 602

Re: Safeharbor and Estimated Taxes + Unexpected Capital Gain

first, don't panic......the penalty (interest actually) is assessed on your shortfall of the safe harbor....in your case, you fell short of of 2013 by $500 so the interest penalty will be something like 3% on the $500 for some period of time so < $15. A few things though......the tax they are talkin...
by kaneohe
Sun Feb 22, 2015 8:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Safeharbor and Estimated Taxes + Unexpected Capital Gains
Replies: 3
Views: 460

Re: Pick-Pockets

train in Paris.....I had been warned before traveling so I was very aware of surroundings in station and boarding train. For some reason, I did not think pickpockets were on the train itself.........bad assumption esp. in a crowded train where you are standing up and and arms are up holding on and n...
by kaneohe
Sun Feb 22, 2015 7:29 pm
 
Forum: Personal Consumer Issues
Topic: Pick-Pockets
Replies: 63
Views: 5076

Re: Foreign Source Income/Foreign Tax Credit

The non-foreign income is about $500 and the FT is 300; similar but not close.
by kaneohe
Sun Feb 22, 2015 2:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Foreign Source Income/Foreign Tax Credit
Replies: 9
Views: 602

Re: An Easier Approach to Estimated Taxes

The W4 has a provision for taking an additional amt X per pay period. Might be easier that way.
http://www.irs.gov/pub/irs-pdf/fw4.pdf
by kaneohe
Sun Feb 22, 2015 2:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: An Easier Approach to Estimated Taxes
Replies: 5
Views: 724

Re: Foreign Source Income/Foreign Tax Credit

livesoft, thanks for the reminder that I should be able to fish for myself. Schwab didn't include any relevant supplemental material to my knowledge w/ the 1099 composite and the reps didn't suggest that there was such a document online so I didn't even try. I tried schwab.com but couldn't find anyt...
by kaneohe
Sun Feb 22, 2015 1:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Foreign Source Income/Foreign Tax Credit
Replies: 9
Views: 602

Re: Joint account for estate plan

if jt w/ right of survivorship JTWROS,yes but what happens at the 2nd death?
by kaneohe
Sun Feb 22, 2015 1:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Joint account for estate plan
Replies: 1
Views: 179

Re: Foreign Source Income/Foreign Tax Credit

Thanks, livesoft. That was my thought also but broker gave answer closer to net. Maybe I'll do a 2/3 majority vote to give them another chance.
by kaneohe
Sun Feb 22, 2015 10:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Foreign Source Income/Foreign Tax Credit
Replies: 9
Views: 602

Re: Creating Net Worth Line Graph

As a last resort.....code the dates as numbers representing the yr and the months as fractions of the yr
e.g.

June 2008 = 850 8=2008; 50= 50% of yr= June
Sept 2009 = 975
Mar 2010= 1025 etc
by kaneohe
Sun Feb 22, 2015 10:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Creating Net Worth Line Graph
Replies: 20
Views: 1888

Foreign Source Income/Foreign Tax Credit

Suppose 1099 -DIV says 4000 for Total ordinary Div and 300 for Foreign Tax. No Foreign Source income is given but broker says all is foreign income.
Is foreign source income 4000 (the gross income) or 3700 (the amount you received after foreign tax)?
by kaneohe
Sun Feb 22, 2015 2:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Foreign Source Income/Foreign Tax Credit
Replies: 9
Views: 602

Re: Pay the IRS now for shares sold in 1st quarter of 2015?

If applicable use the safe harbor of paying at least 100% of last yrs taxes (or 110% if AGI >150K) through withholding and you should be ok

http://fairmark.com/estimate/howmuch.htm
by kaneohe
Sat Feb 21, 2015 4:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pay the IRS now for shares sold in 1st quarter of 2015?
Replies: 12
Views: 615

Re: Cap Gains & Divs killed me this year

"AMT Capital Loss carryover: You are allowed to deduct the carryover loss in the same year for AMT purposes. For example, if you had an overall gain of $18,000 from stocks, and capital loss of $10,000. For general tax, you are only allowed to apply $3,000 loss, and carry forward the remaining $...
by kaneohe
Fri Feb 20, 2015 7:15 pm
 
Forum: Investing - Theory, News & General
Topic: Cap Gains & Divs killed me this year
Replies: 61
Views: 5875

Re: backdoor Roth question: form 8606 line 2 (total basis)

Sounds like it should be 0 but you should have modified your last 8606 to be in conformance with that. Each 8606 should build on the previous one, and if they don't ,it could be a bit messy in the future.
by kaneohe
Fri Feb 20, 2015 12:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: backdoor Roth question: form 8606 line 2 (total basis)
Replies: 4
Views: 216

Re: Cost Basis Questions

https://personal.vanguard.com/us/help/FAQCostBasisContent.jsp#Brokeragechgmethod

If you haven't sold any shares yet, it is possible specific ID could be used for all shares. Confirm w/ VG.
by kaneohe
Thu Feb 19, 2015 4:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cost Basis Questions
Replies: 11
Views: 992

Re: New Credit Card Promo For AARP Members

I wonder if the 3% cash backs are the "Great introductory rate" mentioned on the upper right of the web page, and how long they will last. Regardless, it will take more than that to persuade me to return to AARP. You never know how long the rewards will last but the literal answer to your...
by kaneohe
Thu Feb 19, 2015 10:20 am
 
Forum: Personal Finance (Not Investing)
Topic: New Credit Card Promo.
Replies: 6
Views: 651

Re: Dependent eligibility tax return

"you must have provided at least half of the person’s total support for the year — food, shelter, clothing, etc." Along with 4 other requirements posted in link"Rules for Claiming Children" https://www.1040.com/federal-taxes/taxes-for-families/who-can-you-claim Sorry that's just...
by kaneohe
Wed Feb 18, 2015 3:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Dependent eligibility tax return
Replies: 5
Views: 287

Re: TurboTax Treatment of Capital Gains & Dividends

What's on the 1040 lines 15b, 16b? How much income added from the online trading account?
by kaneohe
Wed Feb 18, 2015 2:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: TurboTax Treatment of Capital Gains & Dividends
Replies: 10
Views: 651

Re: RMD Greater Than Budget

Next year our combined RMD requirement will most likely exceed our planned budget ; thinking of (a) rolling the excess into a Roth ; 5 year wait for distributions from (a) The can't of a) is discussed below. If you did legitimately convert some of the TIRA to Roth, re: the 5 yr wait. from a table b...
by kaneohe
Tue Feb 17, 2015 3:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: RMD Greater Than Budget
Replies: 20
Views: 1587

Re: RMD Greater Than Budget

In order to convert from TIRA to Roth when you are of RMD age, you need to take your RMD out FIRST (and cannot convert that) and then take more out later (which you can convert).
by kaneohe
Tue Feb 17, 2015 3:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: RMD Greater Than Budget
Replies: 20
Views: 1587

Re: tax dependent vs $3950 vs income

Probably a lot more fun to see if you can come up w/ the rules by playing what if w/ TT but a lot easier if you cheat and look in the book:
see pg. C5/6 here http://www.irs.gov/pub/irs-pdf/p4012.pdf
by kaneohe
Tue Feb 17, 2015 3:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: tax dependent vs $3950 vs income
Replies: 12
Views: 719

Re: Foreign Stocks in Taxable - Gotcha w/ foreign tax credit

Under certain conditions it appears that you can make adjustments to foreign income but don't have to.
Is is true that if you have a choice that it is better not to? Or does it depend.........
by kaneohe
Sat Feb 14, 2015 4:42 pm
 
Forum: Investing - Theory, News & General
Topic: Foreign Stocks in Taxable - Gotcha w/ foreign tax credit
Replies: 55
Views: 6486

Re: Understanding tax brackets

I looked at the IRS instructions for line 44 on the 1040. The instructions for taxable income over $100,000 are to go to a worksheet. I have to multiply my taxable income by 28% and then can deduct 6824. So does this mean that I am taxed at 28% on my taxable income except for the standard deduction...
by kaneohe
Sat Feb 14, 2015 10:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Understanding tax brackets
Replies: 13
Views: 1274

Re: Child's Education tax credits question.

http://www.irs.gov/pub/irs-pdf/p4012.pdf see the Note on pg J4 Who Can Claim the Credit? • Taxpayers who paid qualified educational expenses of higher education for an eligible student. • Taxpayers who paid the education expenses for a student enrolled at or attending an eligible educational instit...
by kaneohe
Fri Feb 13, 2015 4:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Child's Education tax credits question.
Replies: 4
Views: 500

Re: Tax Question

IRAs are taxed on how much you withdraw from them so it would not make any difference.
by kaneohe
Fri Feb 13, 2015 3:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Question
Replies: 1
Views: 297

Re: HSA qualified disbursement question

. You are allowed to withdraw money before the expense. From Pub 969 [emphasis added] You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. I wonder how far you can push this..........suppose the expense is...
by kaneohe
Fri Feb 13, 2015 12:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA qualified disbursement question
Replies: 26
Views: 1638

Re: HSA qualified disbursement question

Perhaps OP has a middle ground . When the funds were taken out , OP might have had the option to roll them over to another or the same HSA within 60 days (assuming no such similar rollover within the last 12 mos). Then they could have been disbursed later for subsequent medical expenses, If the new...
by kaneohe
Fri Feb 13, 2015 11:28 am
 
Forum: Personal Finance (Not Investing)
Topic: HSA qualified disbursement question
Replies: 26
Views: 1638

Re: HSA qualified disbursement question

Perhaps OP has a middle ground . When the funds were taken out , OP might have had the option to roll them over to another or the same HSA within 60 days (assuming no such similar rollover within the last 12 mos). Then they could have been disbursed later for subsequent medical expenses, If the newe...
by kaneohe
Fri Feb 13, 2015 10:33 am
 
Forum: Personal Finance (Not Investing)
Topic: HSA qualified disbursement question
Replies: 26
Views: 1638

Re: Better to leave qualified or non-qualified money to kids

If you inherit $100K in an IRA and use it to pay off your mortgage, you lose $25K to tax, so you can only pay down $75K of your mortgage. If you use it to contribute to your Roth 401(k), you lose $25K plus any gains. If you use it to contribute to your traditional 401(k), you can contribute the ful...
by kaneohe
Fri Feb 13, 2015 9:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Better to leave qualified or non-qualified money to kids?
Replies: 14
Views: 1372

Re: Better to leave qualified or non-qualified money to kids

You'll have to refine the calculation but If I were the kid, I think I'd pick the taxable account. 1)Inherit 100 in IRA . Assume you didn't have to take RMDs (you do) and the value doubles in N yrs to 200. If they then take this out at 25% tax of 50, they get left w/ 150. 2)Inherit 100 in taxable w/...
by kaneohe
Thu Feb 12, 2015 5:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Better to leave qualified or non-qualified money to kids?
Replies: 14
Views: 1372

Re: Traditional IRA to Roth. What do I do with 1099R

Maybe check this and see if similar to yours https://www.bogleheads.org/forum/viewtopic.php?f=1&t=157707
Conclusion was something about having to fill in both income and deduction sections before correct answer appeared.
by kaneohe
Thu Feb 12, 2015 3:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA to Roth. What do I do with 1099R
Replies: 15
Views: 997

Re: Tax Return-403b Not vested? W2 Box 13 has nothing checke

You might want to wait a few days to see what Alan S. says. The only worry is the contributions the employer is making. The IRS doc mentions contributions w/o saying whose.......".You’re covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a: De...
by kaneohe
Thu Feb 12, 2015 12:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Return-403b Not vested? W2 Box 13 has nothing checked
Replies: 8
Views: 332

Re: Forgot to take RMD.. now what?

Christine_NM wrote:. The sooner she acts the better.

Google "appeal for rmd" -- lots of info out there.


Action includes taking the missing RMD ASAP. Maybe consider putting the RMD on autopilot so the custodian worries about it from now on.
by kaneohe
Wed Feb 11, 2015 3:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Forgot to take RMD.. now what?
Replies: 27
Views: 2752

Re: 2015 Estimated Tax Payments

I guess I still don't understand.... just in the base case, if you owe taxes of more than $1,000 you can get assessed an additional "penalty"? For example, when you file your taxes for 2015 and you owe $1,500, you can possibly get in trouble for that? Why not just pay the $1,500 and move ...
by kaneohe
Wed Feb 11, 2015 3:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: 2015 Estimated Tax Payments
Replies: 6
Views: 514

Re: Help me respond to a colleagues question

maybe numbers speak louder...........you'll need to tweak to get better estimates and perhaps change tax rates. I'm assuming TSP is just another 401K but there may be details I'm not aware of. Assume in 25% bracket 1) contribute to TSP 10K. After some N yrs it doubles to 20K. If you were still in 25...
by kaneohe
Wed Feb 11, 2015 2:38 pm
 
Forum: Investing - Theory, News & General
Topic: Help me respond to a colleagues question
Replies: 9
Views: 1224
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